Common use of Interest Rate Cap Required Clause in Contracts

Interest Rate Cap Required. Unless F▇▇▇▇▇▇ Mac determines in its sole discretion that a Property's LTV is less than or equal to 60%, or unless the Commitment for a Variable Rate Loan provides for an "internal" interest rate cap (the cost of which will be included in the Margin), the Borrower of each Variable Rate Loan must maintain in effect during the entire term of such Variable Rate Loan a Third Party Cap Agreement. Each Third Party Cap Agreement shall have a notional amount equal to the Loan Amount and a term in accordance with the following requirements: 5 years At maximum allowed under §3.1.2 5 years 5 years At least 5% less than maximum allowed under §3.1.2 3 years with escrow 7 years At maximum allowed under §3.1.2 7 years

Interest Rate Cap Required. Unless F▇▇▇▇▇▇▇ Mac determines in its sole discretion that a Property's LTV is less than or equal to 60%, or unless the Commitment for a Variable Rate Loan provides for an "internal" interest rate cap (the cost of which will be included in the Margin), the Borrower of each Variable Rate Loan must maintain in effect during the entire term of such Variable Rate Loan a Third Party Cap Agreement. Each Third Party Cap Agreement shall have a notional amount equal to the Loan Amount and a term in accordance with the following requirements: TERM OF LOAN LTV MINIMUM TERM OF THIRD PARTY CAP AGREEMENT 5 years At maximum allowed under §3.1.2 5 years 5 years At least 5% less than maximum allowed under §3.1.2 3 years with escrow 7 years At maximum allowed under §3.1.2 7 yearsyears 7 years At least 5% less than maximum allowed under §3.1.2 4 years with escrow 10 years At maximum allowed under §3.1.2 10 years 10 years At least 5% less than maximum allowed under §3.1.2 5 years with escrow